ZAGREB, Dec 8 (Hina) - Although Croatia's credit rating for December remains the same as in November, DB5a, the strengthening of its international position, a continual growth of its Gross Domestic Product, the growth of direct
foreign investments and the influx of money from privatisation as well as significant improvements in the financial sector have positively affected the further shaping of the country's credit rating. This is the assessment of the December report of one of the leading world agencies for credit rating, Dun&Bradstreet (D&B), publicised by the Zagreb company BonLine. However, the report adds, some negative factors separate Croatia from the category of lower investment risk. Those include a potential break-up of the ruling coalition, pressure on the budget inherited from previous operations and an increased risk of domestic bankruptcies due to the arrival of
ZAGREB, Dec 8 (Hina) - Although Croatia's credit rating for
December remains the same as in November, DB5a, the strengthening
of its international position, a continual growth of its Gross
Domestic Product, the growth of direct foreign investments and the
influx of money from privatisation as well as significant
improvements in the financial sector have positively affected the
further shaping of the country's credit rating.
This is the assessment of the December report of one of the leading
world agencies for credit rating, Dun&Bradstreet (D&B), publicised
by the Zagreb company BonLine.
However, the report adds, some negative factors separate Croatia
from the category of lower investment risk. Those include a
potential break-up of the ruling coalition, pressure on the budget
inherited from previous operations and an increased risk of
domestic bankruptcies due to the arrival of competition from the
West.
An arrangement with the International Monetary Fund (IMF) could be
the 'ticket' for DB4 category, D&B experts believe, although the
current amount of foreign currency reserves does not call for
additional loans from the IMF.
DB5a rating is the best rating in DB5 category, which includes
countries with high investment risk. DB4 category, which is above
DB5 rating, would include Croatia into the category of countries
with moderate investment risk, including, among else, Slovakia,
Estonia and Lithuania.
The best rating, DB3a, designating a country with low investment
risk, is held by Hungary, and Slovenia joined it this month.
Yugoslavia and Albania share the last, DB7 credit rating, as
countries with the highest investment risk.
(hina) jn rml